Fannie, Freddie to Create Joint Firm

The regulator overseeing Fannie Mae and Freddie Mac announced Monday one of the most concrete efforts to date for building a new infrastructure that could ultimately replace the government-controlled mortgage companies.

Edward DeMarco, acting director of the Federal Housing Finance Agency, said the agency would begin forming a company that would consolidate some of the "back-office" functions currently replicated individually by each firm. The company would have its own chief executive and board and for now...